How to trace a npa account in bank

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Raj Sharma (Querist)
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03 April 2015 sir. kya aap mughe ye bata skate ho ki koi bank account NPA kab or kaise banta he or agar banta he to kya bank us ACCOUNT KO NPA banane se rok skti he. agra ha to kaise please reply

Trilok Lalwani

Trilok Lalwani (Expert)
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06 April 2015 A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of Bank finance Principal has remained ‘past due’ for a specified period of time. NPA is used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principle payments for 90 days/ 3 Months the loan is considered to be a non-performing asset. In running account like cash credit and overdraft accounts, if the account remains ‘out of order’ for a period of more than 90 days, the account is classified as NPA.

As regard your query whether Bank can prevent the account being traveling to NPA, Banks decide the matter on case to case basis. If possible and feasible within RBI/ IRAC norms Banks would definitely try to arrest slippage of the account.

If you have specific case, request you can refer the same to me on my mail ID trilsav1207@gmail.com

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